I'm a S-corp LLC and I built an office last year using my own people and a contractor. I purchased a lot of tools for the construction. How do I know if I should deduct the cost of a tool, or depreciate the tool? If I deduct a smaller tool, what would that be listed as? Office supply?
You can expense tools costing less than $2,500 each if you make the de minimis safe harbor election.
They can be expensed as a Miscellaneous expense described as Equipment costing less than $2,500 each.
Please read this IRS document for more information.
I don't see a category called Miscellaneous expense in the business return
In the Business return, you can deduct this expense under All Other Expenses and describe it as Equipment costing less than $2,500 each.
Don't forget to make the De Minimis Safe Harbor Election in the program.
Remember, this threshold amount is per 2,500 invoice. I would put in the description Equipment/ Safe Harbor Rule.
@AbrahamT I believe the threshold would be per item not per invoice.
This holds true as long as the items are broken down separately and priced separately on the invoice.